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Electrical Distributors Inc Generic Strategy Case Study Help


Electrical Distributors Inc Generic Strategy Generic Strategy Case Study HelpIn this area we would be examining the generic techniques that have been utilized by Electrical Distributors Inc Generic Strategy to highlight areas which can be targeted for highlighting a competitive edge that can lead to a sustainable development strategy for Electrical Distributors Inc Generic Strategy.

Focus Strategy: Niche Marketing

As per Michael porter's generic techniques, businesses have the option of operating as specific niche players where they focus on a smaller sized sector of the marketplace. Electrical Distributors Inc Generic Strategy has the choice of operating as a specific niche player by making big format movies and systems rather than catering to the mass market. We have talked about 3 possible alternatives for Electrical Distributors Inc Generic Strategy which can be pursued in regards to niche marketing. Prior to we look at these options, a discussion concerning why Electrical Distributors Inc Generic Strategy requires an alternative revenue growth design is shared below.

We have currently discussed how Electrical Distributors Inc Generic Strategy has three revenue sources including its theatre operations, film circulation and system leasing. As we look at the earnings declarations for 2004 to 2007, we can observe disparity in regards to success and development in incomes. A fall in earnings especially in 2006 and 2007 suggests that the business requires to focus on locations of development which can promise consistency in earnings growth and profitability.

As we explore each of the earnings sources for Electrical Distributors Inc Generic Strategy, we can see how the system-leasing organisation of Electrical Distributors Inc Generic Strategy has dependence on the expansion of theatres and even then there is a restriction in regards to the number of theatres that can be opened up.

As far as the theatre operations are concerned, revenues from this source depend on the number of theatres that Electrical Distributors Inc Generic Strategy runs. In addition to that, broadening the variety of theatres may lead to high capital costs for Electrical Distributors Inc Generic Strategy where the possibility of more overheads in the form of interest payments on loans for capital expense may result in lower net profitability.

Franchises or Alliances:

We have actually currently discussed the financial obligation to assets, liquidity and success of the company in the ratio analysis done earlier to evaluate the internal financial position of Electrical Distributors Inc Generic Strategy which would give more clearness relating to the reality that increasing the long term liability is not a possible alternative for development. One possible choice that can be evaluated further is to give franchises of Electrical Distributors Inc Generic Strategy or to have alliances with other companies which can promote expansion with minimal capital expenditure.

Documentaries:

If we check out Electrical Distributors Inc Generic Strategy position in its movie distribution service, we can see how there is a higher orientation towards producing documentary films. Focusing on documentaries in terms of expanding the film distribution service means limiting the number of releases to a couple of documentaries that may not be bring in more than the current audience.